Principles for Positive Impact Finance

The Principles for Positive Impact Finance are a high-level, inclusive, meta-framework for holistic impact management by financial institutions at the heart of their business operations. They are the core component of the Positive Impact Initiative for banks and investors.

By requiring that the three dimensions of sustainable development (environmental, social and economic) be considered via a transparent appraisal of both positive and negative impacts, they are designed to complement existing impact frameworks to:

  • drive better, SDG-serving business models across the economy
  • bring further clarity to market players and avoid ‘SDG-washing’
  • provide an entry point to deeper thinking on the financial value of positive impacts and the development of new, impact-driven business models.

Download the Principles for Positive Impact Finance brochure:

PI Model Frameworks

The Model Frameworks are the tools through which the PI Principles are interpreted and implemented. They are developed by the PI Initiative to guide the delivery of Positive Impact financial products and for ongoing portfolio monitoring. Financial institutions can use them develop or adapt their own frameworks. Auditors, analysts and other stakeholders can use them to verify or provide opinions on the PI nature of financial products.

Download our Model Framework for specified use of proceeds
Download our Model Framework for financial products for corporates with unspecified use of funds
Download our Model Framework for real estate investment

PI Impact Radar

The Impact Radar aims to offer a credible and comprehensive set of impact categories that can be integrated with the tools developed to deliver PI finance and contribute to a common frame for the assessment of PI products in the industry. The radar captures the core elements of the SDGs in a way that is applicable to business. It is anchored in international definitions and standards. It is global, neutral and practical.

Download the PI Radar

Refer to our Frequently Asked Questions for more information

 

PRINCIPLE ONE: Definition

Positive Impact Finance is that which serves to finance Positive Impact Business. It is that which serves to deliver a positive contribution to one or more of the three pillars of sustainable development (economic, environmental and social), once any potential negative impacts to any of the pillars have been duly identified and mitigated. By virtue of this holistic appraisal of sustainability issues, Positive Impact Finance constitutes a direct response to the challenge of financing the Sustainable Development Goals (SDGs).

PRINCIPLE TWO: Frameworks

To promote the delivery of Positive Impact Finance, entities (financial or non financial) need adequate processes, methodologies, and tools, to identify and monitor the positive impact of the activities, projects, programmes, and/or entities to be financed or invested in.

PRINCIPLE THREE: Transparency

Entities (financial or non financial) providing Positive Impact Finance should provide transparency and disclosure on:

  • The activities, projects, programs, and/or entities financed considered Positive Impact, the intended positive impacts thereof (as per Principle 1);
  • The processes they have in place to determine eligibility, and to monitor and to verify impacts (as per Principle 2);
  • The impacts achieved by the activities, projects, programs, and/or entities financed (as per Principle 4).

PRINCIPLE FOUR: Assessment

The assessment of Positive Impact Finance delivered by entities (financial or non financial), should be based on the actual impacts achieved.